Bullish Analyst Cuts Targets Amid 'Hard Landing for Rare Earth Prices' (AVL) (MCP) (REE)
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Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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Stocks in the Rare Earth group have been volatile Tuesday morning as one of the few analyst firms which cover the sector took a cautious stance in an earlier research note.
Dahlman Rose, in a report entitled "Analyzing A Hard Landing for Rare Earth Prices," said while the firm remains optimistic over the long-term, it is cutting estimates for rare earth prices "to what we view to be the marginal cost of production..."
The firm now sees long-term prices for lanthanum and cerium at an average price of $12/kg, down sharply from a prior estimate of $30/kg. Dahlman is comfortable with its estimates for dysprosium and europium prices; the firm actually boosted its forecast for these metals.
Despite "compelling value in many of the equities" in the group, Dahlman Rose lowered price targets across the board:
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Dahlman Rose, in a report entitled "Analyzing A Hard Landing for Rare Earth Prices," said while the firm remains optimistic over the long-term, it is cutting estimates for rare earth prices "to what we view to be the marginal cost of production..."
The firm now sees long-term prices for lanthanum and cerium at an average price of $12/kg, down sharply from a prior estimate of $30/kg. Dahlman is comfortable with its estimates for dysprosium and europium prices; the firm actually boosted its forecast for these metals.
Despite "compelling value in many of the equities" in the group, Dahlman Rose lowered price targets across the board:
- Avalon Rare Metals (NYSE: REE) from $15 to $8;
- Molycorp (NYSE: MCP) from $120 to $70, and
- Rare Element Resources (NYSE: RE)) from $21 to $9.
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rare earth future
lawrence on Oct 13, 2011 08:35 PMMark as Spam | Reply to this comment
your picking the wrong horses guys except for REE.See you on the other side of the re crisis.